Question

Budgeted direct labor-hours 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 8,200 8,300 8,600 8,000 The company uses direct labor-hours as its overhead allocation base. The variable portion of its predetermined manufacturing overhead rate is $2.25 per direct labor-hour and its total fixed manufacturing overhead is $50,000 per quarter. The only noncash item included in fixed manufacturing overhead is depreciation, which is $12,500 per quarter. Required: 1. Prepare the company's manufacturing overhead budget for the upcoming fiscal year. 2. Compute the company's predetermined overhead rate (including both variable and fixed manufacturing overhead) for the upcoming fiscal year. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the company's manufacturing overhead budget for the upcoming fiscal year. (Round "Variable manufacturing overhead rate" answers to 2 decimal places.) Yuvwell Corporation Manufacturing Overhead Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year! Variable manufacturing overhead rate Variable manufacturing overhead Fixed manufacturing overhead Total manufacturing overhead Cash disbursements for manufacturing overhead

Answer 1

Yuvwell Corporation
Manufacturing Overhead Budget
	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter	Year
Budgeted direct labor hours	8200	8300	8600	8000	33100
Variable manufacturing OH rate	$2.25	$2.25	$2.25	$2.25	$2.25
Variable manufacturing	$18,450	$18,675	$19,350	$18,000	$74,475
Fixed manufacturing OH	$50,000	$50,000	$50,000	$50,000	$2,00,000
Total manufacturing OH	$68,450	$68,675	$69,350	$68,000	$2,74,475
Less:Depreciation(non cash item)	$12,500	$12,500	$12,500	$12,500	$50,000
Cash disbursement	$55,950	$56,175	$56,850	$55,500	$2,24,475
Company's Predetermined Overhead rate	$8.29
($274,475/33,100 hours)